Credit Card Repayment Calculator
Frequently Asked Questions
What is a good monthly payment for credit card debt?
Pay as much as possible above the minimum. Paying only the minimum (2.5%) on a £3,500 balance at 24.9% APR could take over 20 years. A £150 monthly payment clears it in around 29 months.
What is a typical UK credit card APR?
Standard purchase APRs range from 20-35% for most UK credit cards. Balance transfer cards offer 0% intro periods. Store cards can charge 30%+. Always check the representative APR before applying.
Should I pay off my credit card or save?
If your credit card APR (e.g. 24.9%) exceeds your savings rate (e.g. 5%), paying off the card first gives a guaranteed 'return' equal to the interest rate saved.
What happens if I only pay the minimum?
Minimum payments are typically 2-2.5% of the balance or £25, whichever is higher. Paying only the minimum keeps you in debt much longer and costs significantly more in interest — the credit card statement must now show how long minimum payments would take.
Can I transfer my balance to a 0% card?
Yes — balance transfer cards offer 0% interest for introductory periods (typically 18-30 months). A transfer fee of 1-3% usually applies. If you can clear the balance in the 0% period, this saves significant interest.
How does credit card interest compound?
UK credit cards charge interest monthly on the average daily balance. This means interest compounds monthly — interest accrues on unpaid interest as well as the principal balance.
What credit score do I need for a 0% card?
Good to excellent credit (typically 670+ on a 0-999 scale) is usually required for the best 0% balance transfer offers. Check your eligibility before applying to avoid credit score impact.
Does paying off a credit card improve my credit score?
Yes — reducing your credit utilisation (the % of available credit you use) improves your score. Aim to keep utilisation below 30% of your total credit limit for a positive impact.